President Paul Kagame has made a case for the replenishment of the International Development Association (IDA), the World Bank fund to support emerging economies in their recovery from the Covid-19 crisis and transition to green, resilient, and inclusive development. The World Bank launched an early twentieth replenishment process of the International Development Association (IDA20), with an aim to support countries in their recovery from the Covid-19 crisis and transition to green, resilient, and inclusive development. The IDA20 replenishment will conclude in December 2021 with a policy and financial package to support 74 countries between July 2022 and June 2025. Kagame was speaking virtually at a summit of African leaders and the World Bank hosted by Alassane Ouattara, the President of Côte d’Ivoire, which aimed at mobilising global support for the IDA20. He called for replenishing the fund to mobilise at least $100 billion by the end of 2021 He said that the replenishment will go a long way especially in sectors such as investment in infrastructure, climate mitigation, industrial development, and human capital which are outlined as priority areas. “If implemented, the bold vision articulated in this Declaration will enable Africa to recover from the pandemic and return to a solid growth trajectory,” he said. With the replenishment, Kagame said that countries must do better in building accountable and efficient service delivery institutions as well as domestic revenue mobilisation. “In Africa, we must do our part by building accountable and efficient service delivery institutions. We must also mobilize more domestic tax revenue and invest a greater share of our own resources in the health and education budget,” he said. Kagame also added that Africa’s sub-regions can do more to reduce vulnerability to conflict and fragility which often erode gains made as it diverts resources from development priorities. “There is a real need for us to work together closely to find a sustainable financing mechanism for peace and security institutions in Africa, alongside IDA20 and reinforcing it,” he said. “It goes without saying that the private sector has a very important and central role to play in partnering with the government,” he added. He called on stakeholders to focus on progress and not be held back by obstacles that can be addressed along the way. IDA is one of the largest sources of funding for fighting extreme poverty in emerging economies. IDA provides zero- or low-interest loans and grants to countries for projects and programmes that stimulate economic growth, build resilience, and improve the lives of poor people around the world.
